According to a report released by the South East Asia Iron and Steel Institute (SEAISI), in the first half of 2014 apparent steel consumption in the ASEAN region decreased by 5.3 percent year on year to 32.2 million mt, due to the declines of steel demand in Singapore, Thailand, Vietnam and Malaysia. Amidst the slowdown in steel demand in many countries in the region, Indonesia and the Philippines still managed to enjoy positive growth rates in steel consumption in the given period.
Singapore's steel demand for both flat steel and long steel registered declines of 29 percent year on year and 16 percent year on year, respectively. However, NatSteel Holdings, the only steel producer in the country, boosted its production after the temporary shutdown in the previous year for upgrading work, registering a significant increase of 41 percent year on year. The country's total steel imports dropped significantly by 19 percent year on year.
Meanwhile, Thailand's steel demand, which shrank by 1.5 million mt in the first half of 2014 compared to the same period of 2013, has exerted a significant impact on the decline of steel demand in the region. Both flat steel and long steel demand registered declines of 17 percent year on year and 11 percent year on year, respectively. Total steel imports by Thailand declined by 16 percent year on year in the first half of 2014.
According to SEASI, the four percent decline in Malaysia's steel demand was largely due to the drop of 22 percent year on year in flat steel demand. Demand for long steel increased by 10 percent year on year. However, domestic long steel producers did not benefit from the growth in domestic demand and saw little change in production volume. Malaysia's long steel imports, on the other hand, improved substantially, rising 24 percent year on year in the same period.